Skip to Main Content
Intermediate Accounting, Tenth Canadian Edition, Volume 2
book

Intermediate Accounting, Tenth Canadian Edition, Volume 2

by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
June 2013
Intermediate to advanced content levelIntermediate to advanced
832 pages
11h 42m
English
Wiley
Content preview from Intermediate Accounting, Tenth Canadian Edition, Volume 2

Chapter 22

Statement of Cash Flows

OVERVIEW

Under both IFRS and ASPE, a complete set of basic financial statements includes a statement of cash flows for each period for which results of operations are provided. The primary purpose of a statement of cash flows is to provide relevant information about an entity's sources (receipts) and uses (payments) of cash during a period. When analyzed in conjunction with related disclosures and information contained in the other financial statements, the statement of cash flows helps investors, creditors, and others to assess: (a) the entity's ability to generate positive future net cash flows; (b) the entity's ability to meet its obligations and to pay dividends; (c) the entity's need for external financing; (d) the reasons for the difference between net income and cash flow from operating activities; and (e) the effects of both cash and noncash investing and financing transactions during the period on the entity's financial position. This chapter discusses preparation of a statement of cash flows, and related presentation, disclosure, and analysis issues.

STUDY STEPS

Understanding the Value of the Statement of Cash Flows

The primary objective of the statement of cash flows is to provide relevant information about a company's sources of cash (such as operating activities, sale of assets, and external financing) and uses of cash (such as operating activities, purchase of assets, and repaying debt). The statement of cash flows focuses on ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Accountants' Handbook, Volume Two, Special Industries and Special Topics, 12th Edition

Accountants' Handbook, Volume Two, Special Industries and Special Topics, 12th Edition

D. R. Carmichael, Lynford Graham

Publisher Resources

ISBN: 9781118300855Purchase book